Cash Plus March deadline uncertain – We don’t want investors’ names, says FSC.

Cash Plus March deadline uncertain – We don’t want investors’ names, says FSC.
published: Sunday | March 16, 2008

File
George Roper, acting executive director, Financial Services Commission.

Sabrina N. Gordon, Business Reporter

Cash Plus Limited (CPL) and the Financial Services Commission are in dialogue to explore the possibility of the investment scheme registering its operation in compliance with the securities law.

But, up to a week ago, Cash Plus still had not formally applied to the Financial Services Commission (FSC) for registration, the regulator confirmed to Sunday Business.

On Friday, the FSC also sought to calm the scheme’s nervous investors, saying it was not interested in obtaining their personal information.

‘Not trying to hinder’

That concern emerged after the FSC issued an olive branch to Cash Plus, allowing the company leeway to pay investors, but under strict conditions that required the scheme to say how much it owed, and explain how it would fund the payments.

“The FSC has not requested that CPL provide a list with the names of its investors,” said an FSC statement.

“The FSC is not trying to hinder CPL from making payouts to investors,” it added. “The FSC has always indicated its willingness to allow CPL to make payouts to its investors once they approach the FSC for such permission.”

To meet the March 31 deadline it announced to club members to resume monthly payment of returns, Cash Plus would have had to apply for registration at least a month before, Sunday Business checks indicate.

Up to March 6, there had been no application.

The FSC says it takes, on average, one to six months to process applications, depending on whether the required submissions are sufficiently detailed.

At the end of February, Cash Plus had declared in a public advertisement plans to resume payments of monthly returns by March 31, but noted that it was contingent on FSC approval.

A cease-and-desist court order issued in December remains in effect against the investment scheme until it is licensed to deal securities or have its investment products registered.

The order bars the company from conducting securities business with members of the public, which includes the taking of new funds and making payments to its investors.

But, the FSC has opened a window for Cash Plus to make payments, pending registration.

The FSC said in a public notice that it is willing to vary the order, allowing the investment scheme to pay all outstanding balances. Cash Plus has not reacted publicly to the FSC offer.

Lawyer Harold Brady, when asked for comment, referred Sunday Business to another attorney, Minett Palmer-Lawrence – said to be Cash Plus’ general counsel – but efforts to get in touch with her failed.

Variation

The variation will be granted once Cash Plus provides the FSC with information on the total number of investors to be paid, the sum to be paid, the method to be used and the source of funds, “for example, whether this is by way of loan or sale of assets,” the FSC said Friday in its statement.

“The FSC believes that it should be very easy for CPL to provide this information and indeed, CPL to date has not indicated to the FSC any objection on (its) part to supply this very basic information,” the regulator said.

In an earlier interview with Sunday Business, acting executive director of the FSC, George Roper, said the variation would be rescinded “if any evidence running counter to the variation in respect to the payment is found”.

The FSC said it would advise the public if and when CPL accepted its offer, but had said in its ad that it was not prepared to vary the cease-and-desist order beyond June 30.

Olint appeals for Hylton ban

Olint appeals for Hylton ban
published: Friday | March 14, 2008

Investment Club Olint Corporation Ltd is pursuing its application to bar former Solicitor General Michael Hylton, QC, from representing the National Commercial Bank.

The issue is now before the Court of Appeal as Olint is appealing a Supreme Court ruling last week which turned down its application to bar Hylton.

President of the Court of Appeal, Seymour Panton, heard legal arguments in chambers yesterday and is to rule today as to whether Hylton will be barred from representing the bank until the appeal has been heard.

Notice served

The bank had served notice on Olint that it was going to close its accounts because it was not regulated by the Financial Services Commission (FSC). The notice followed a Supreme Court ruling in December last year which upheld a cease-and-desist order which was issued by the FSC in March 2006. Olint went to the Supreme Court and got court orders barring the bank from doing so until there was a hearing.

When the matter came for hearing last month, Olint applied for Hylton to withdraw from the case, claiming that there was a conflict of interest because of his former positions of solicitor general and chairman of the FSC.

Supreme Court Judge Roy Jones ruled last week that there was no evidence that there had been a breach of confidentiality or that Hylton gave confidential information to the bank.

FSC offers option to Cash Plus

FSC offers option to Cash Plus

Monday, March 10, 2008

The Financial Services Commission (FSC) says it will ease its cease and desist order on alternative investment club Cash Plus Limited (CPL) to allow the company to settle its debt to its investors.

However, the regulator made clear it would only grant the variation of the order if Cash Plus provided it with:
. The total number of investors and the aggregate balances due to all investors;

. The methodology by which Cash Plus will facilitate the settlement of the total indebtedness due to investors and the closing of all investor accounts; and

. The source of funds for making payments to the investors.
The FSC made the announcement in a public notice advertisement in the newspapers yesterday in which it also stressed that the cease and desist order was still in effect.

Cash Plus was served with the order by the FSC on December 28, 2007, preventing the company from conducting what the FSC insisted was securities business with members of the public.

The order effectively prohibits Cash Plus from taking new funds and making payments to investors until the club obtains the required licence.

Last year, the FSC declared that Cash Plus breached Section 26 of the Securities Act since it was offering securities to the public without being registered by the Commission. It further stated that failure to stop these activities is an offence under Section 68(7) of the Act and is punishable upon conviction by a fine or imprisonment or both.

Cash Plus then took the FSC to court on the grounds that its operations did not amount to securities trading. But before the legal battle gained leverage the company announced that it would seek to register with the FSC.

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Megafone employees to be paid

Megafone employees to be paid

Thursday, 06 March 2008

A settlement has reportedly been reached in the wage dispute involving workers at one of Cash Plus Limited’s subsidiaries. Scores of employees of Megafone who have been up in arms since their positions were suddenly made redundant on Monday have been promised that all outstanding payments will be made on Friday. The Ministry of Labour which intervened in the matter, said it was told that due to problems with commercial banks, the workers notice pay and redundancy benefits were delayed. “Notice pay and redundancy for those workers who are qualified will be paid on Friday March 7th. It was explained to the Ministry and the workers that owing to existing problems with commercial banks, funds had to be brought in from overseas in order (to make) payments to them. The Ministry accepted the documentation presented from the company,” said Labour Minister Pearnel Charles.